PETALING JAYA: Dagang NeXchange Bhd (DNeX) is proposing to undertake a private placement of up to 20% of its total issued shares to third party investors at an indicative issue price of 22 sen per placement share, which is expected to raise up to RM109.14 million to fund its next phase of growth.
The indicative issue price represents a discount of about 9.47% to the five-day volume weighted average price of DNeX shares of 24.3 sen as of July 15.
The group said it intends to use the gross proceeds to mainly finance suitable and viable potential growth opportunities which in turn can generate positive returns moving forward.
In addition, the gross proceeds will also be used as partial repayment of bank borrowings, working capital, and for expenses associated with the exercise.
DNeX acting group managing director Azhar Mohd Yusof said the growth opportunities include investments that will expand and complement the company’s focus on its core business.
“We believe there are sound opportunities where we can tap to put us back on the growth path. Especially under current market conditions, valuations of certain IT and energy assets have become attractive for the group to consider investing in.
“The corporate exercise will build up the group’s war chest and strengthen our capabilities to develop new sustainable revenue lines as part of our plan to chart the next growth phase for the group,” he said.
He said the group aims to ramp up efforts to participate in digitalisation transformation initiatives in the country and the region. In its energy segment, DNeX is also focused on providing technology-based and digital solutions to its customers.
The proposed private placement is expected to be completed by the fourth quarter of 2020.
source https://www.thesundaily.my/business/dnex-proposes-private-placement-to-raise-up-to-rm10914m-AX3198255
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